In an effort to offer down payment assistance to more homebuyers, the VHDA has created a new second mortgage program, known as the VDHA Plus Second Mortgage. The program, which went into effect August 15, replaces the FHA Plus Loan Program.
The VHDA Plus Second Mortgage, a VHDA-financed and FHA-insured home loan, allows eligible first-time buyers to finance down payment or closing costs.
Under program guidelines, qualified buyers can borrow a percentage of their home’s purchase price. The percentage borrowed is dependent on the borrowers chosen loan program as well as their credit score.
When used with the VHDA FHA first mortgage, the maximum second mortgage will be 3.5 percent of the sales price for those with a credit score below 680, and 5 percent for those with a credit score of 680 or above.
When used with a VHDA Fannie Mae first mortgage program, borrowers can finance up 3 percent for credit scores below 680, and 4.5 percent for credit scores of 680 or higher.
Both the first and second mortgage will have a 30-year fixed interest rate, and standard FHA qualifying guidelines apply.
In addition, the combined totals of the two loans cannot exceed the VHDA sales price limits, and borrowers must complete a VHDA-approved Homeownership Education Class.
To learn more about how you could qualify for this program, contact your local loan officer.
Other program requirements may apply. Contact a VHDA lender to discuss all eligibility requirements. For eligibility, include all income for individuals in the residence. Maximum household income limits apply. See vhda.com/LoanLimits. Program available starting 8/15/18. The information contained herein (including but not limited to any description of TowneBank Mortgage, its affiliates and its lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend.